Why are DIY REI's Losers?

[Max James]

If you've read the The Millionaire Mind by Thomas J. Stanley, you understand most millionaires (as in 98% of them) are not DIYer's. This makes sense to me. To achieve true greatness, in any aspect of success, you need to be the manger, ruler, commander, leader… you get the point. However, starting out, I'm not sure if being an NON DIY'er is the right path to success. Especially in REI. Let me see if you agree.

If you listen to the Bigger Pockets Podcast, @Brandon Turner started out as a DIY investor and learned the trades himself before hiring them out to someone. I am currently in the same boat and believe this is a fantastic way to become a successful investor in the buy and hold rental space. Utilizing your resources when you have them to save cash for the next investment along with learning the true costs involved.

However, according to Thomas J. Stanley and plenty of other successful RE investors, DIY landlords don't have the right mindset and shouldn't be swinging hammers EVER. This side of the fence also makes sense. You are better using your time by learning more about your investing strategy and finding deals. Hiring out EVERY single little task required to re-position a property and normal tasks for landlording. Hedging your bets that if you learn more, this will offset the cost associated with hiring out help.

It’s obviously a personal preference, but if you can sacrifice your time to do the manual labor portions of a re-position/every day landlord tasks when you are starting out, I think you’re better off in the long run. You are giving yourself a competitive edge when in 5+ years you need to hire out the work. You know exactly how much a project will cost to complete and the time involved. You are saving money (sometimes LOTS of money) which can be put towards more investments along with your reserve account.

If you were to hire out EVERY SINGLE task when starting out, wouldn’t you agree this puts you in a position where it will take you longer to acquire more properties, due to the fact your burning money on hiring them? I’m currently performing this balancing act as I am starting to hire out more help. The question is, how much help do you hire out when you have the capability and are willing to commit the time to DIY.

[Steve Vaughan]

I think my view and application on this has changed over the years. I have read the Millionaire Mind and was a little shocked that none of them tend to do any labor around their ONE house.  What if they had 35 houses? 80?  Most of them had a business and ran it as such at the time they were wealthy.  I bet they got a little dirtier early on!

 I used to do absolutely everything.  Had to, really.  Just sunk all my $ into acquiring the asset, right?

I do things I can do that are expensive to hire out.  I just replaced a bunch of receptacles and a breaker.  I just changed out both tub stems at the diverter valve. Each task would have costed me $150 + material easy, but I was done with both in about an hour, and already had the material.  I do all plumbing and above-ground drain, most electrical and most HVAC.   This is expensive labor, and you usually have to be on the job-site anyway to get them started. 

Anymore - I don't clean, I don't dig, I don't hang doors or install trim. I don't do roofs.  I don't stretch carpet or mess with concrete. Learned I am not good at some things and/or just don't wanna do them anymore!   I paint when I feel like it.  Hire my guy when I don't. 

I wouldn't know what I don't like or can't do if I never tried.  To sit up in your castle stroking large checks  working 'on' your business when your new is just foolish to me.  Get in there and do, learn and figure it out!   You will be a better landlord/flipper/wholesaler and build character in the process!  Good question @Max James!